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MOTION OF THE DEBTORS FOR AN ORDER AUTHORIZING ABANDONMENT OF INTERESTS IN THE SPURR PLATFORM LOCATED IN ALASKA AND REJECTION OF EXECUTORY CONTRACTS RELATING THERETO
The above-captioned debtors and debtors in possession (the "Debtors") hereby
move (the "Motion") the Court for entry of an order: (a) pursuant to section 554 of title 11 of
the
United States Code (the "Bankptcy Code"), authorizing the Debtors to abandon nunc pro tunc
to the Petition Date (as defined below) their interests in an offshore oil and gas platform
commonly designated the "Spurr Platform" located in Alaska; and (b) pursuant to section 365 of
the Bankniptcy Code, authorizing the Debtors to reject any executory contracts relating to the
Spurr Platform (together, the "Rejected Contracts")? A detailed description of
the Spurr
Platform and the interests therein that the Debtors seek to abandon (including the Rejected
1 The Debtors in these cases, along with the last four digits of each of
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska
Holdings, LLC (tax I.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The
2 The Debtors reserve all rights to argue that the Rejected Contracts are not executory contracts or that the Debtors
do not have any obligations under such agreements.
the Debtors is 111 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.
68773-002\DOCS _ SF:65003.4
Contracts) are set forth in the Exhibit A hereto (together, the "Abandoned Assets,,).3 The
Abandoned Assets are burdensome and of inconsequential value or benefit to the Debtors'
estates. In support of
Preliminary Statement
1. The Spurr Platform has ceased operations and is being decommissioned.
Marathon and the Debtors each have a 50% ownership interest in the Spurr Platform. However,
the Debtors' responsibility for decommissioning liability is limited to no more than 31.6% of
total costs.4 The projected cost of decommissioning the Spurr Platform is expected to range
between $21.0 milion to $35.0 milion (of
milion to $11.1 milion). To date, the Debtors have received demand from Marathon for
payment of the Debtors' share of
Spurr Platform is no longer an operating property and is in the process of decommissioning, the
Abandoned Assets are a material liability of
to abandon the Abandoned Assets (and to reject the Rejected Contracts) to avoid any
administrative expense associated therewith.
2. Upon abandonment, the Debtors propose that title to the Abandoned
Assets pass to Marathon, as the pary in possession and control of the Spurr Platform. The
3 Technically, the Abandoned Assets belong to Pacific Energy Alaska Operating LLC. Out of
an abundance of caution and in order to ensure that all interests in the Abandoned Assets are addressed by this Motion, the Debtors jointly and hereby seek to abandon any and all of their respective interests in the Abandoned Assets. fie this Motion 4 For purposes herein, the term "decommissioning" refers to the process of disassembling an oil and gas drillng
and processing platform, plugging and abandoning any oil and gas wells, restoring the surface, and removing all equipment or pipelines associated with such platform or wells in a manner consistent with applicable nonbankrptcy law.
2
68773-002\DOCS _ SF:65003.4
Debtors believe that Marathon, in its capacity as operator and par owner of
held responsible by applicable state and regulatory authorities to fulfill all decommissioning
obligations associated with the property. The Debtors (in their sole discretion) wil cooperate
with Marathon to transition the Debtors' interests in the Abandoned Assets, but the Debtors do not intend to fund any portion of the decommissioning liability associated with the Abandoned
Assets on an administrative basis.
Jurisdiction
3. This Court has jurisdiction over this Motion under 28 U.S.C. 157 and
1334. This matter is a core proceeding within the meaning of28 U.S.C. 157(b)(2) (A) and (L).
Venue of
this proceeding and this Motion is proper in this District pursuant to 28 U.S.C.
4. The statutory predicates for the relief requested herein are sections 365
and 554 of the Banptcy Code and Rules 6006 and 6007 of the Federal Rules of
Bankptcy
Backf!round
5. On March 9, 2009 (the "Petition Date"), the Debtors each filed a voluntary
operating and managing their businesses as debtors in possession pursuant to sections 1107 and
3
68773-002\DOCS _ SF:65003.4
acquisition, development and exploitation of oil and gas properties in the western United States.
The Debtors' current oil and gas assets are located offshore near California and principally
offshore in Alaska. The Debtors acquired their current oil and gas assets in transactions
occurring in the fourth quarer of 2006 and during 2007, and their existing secured debt is related to these acquisitions. The Debtors' revenue is largely dependent on the market price for the
underlying crude oil produced, in addition to the level of production. Their revenue for 2008
was approximately $226.2 milion.
Alaska that was erected in the 1960s. It is located in waters with an average depth of 75 feet.
The Spurr Platform was previously an operating facility, but is curently in the process of
decommissioning. A detailed description of the Spur Platform and the other Abandoned Assets
is set forth in Exhibit A hereto.
10. As noted above, the Debtors (by and through Pacific Energy Alaska
Operating LLC) have a 50% ownership interest in the Spurr Platform, but the Debtors'
responsibilty for decommissioning liabilties is limited to no more than 31.6% of total costs.
The Debtors do not have a working interest in the real property or the mineral rights underlying
4
68773-002\DOCS _ S F:65003.4
the Spur Platform. Marathon is the designated operator and is responsible for a majority of
decommissioning costs associated with the Spur Platform totaling at least 68.4% thereof. The
cost of decommissioning the property is expected to range between $21.0 milion to $35.0
milion (of which the Debtors would be responsible for $6.6 milion to $11.1 milion). To date,
$453,460 on account of
the
Debtors' share of
the Debtors'
estates. Accordingly, in order to avoid any administrative expense associated with the Spurr Platform, the Debtors seek to abandon it nunc pro tunc to the Petition Date. Likewise, the
Debtors seek authority to reject the Rejected Contracts that are interrelated with the Debtors'
interests in the Spurr Platform and the other Abandoned Assets.
12. The Debtors propose to abandon the Abandoned Assets to Marathon, as
operator, part owner, and majority obligor for decommissioning costs. The Debtors believe that
Marathon wil be held independently liable by applicable state and regulatory authorities to
fulfill the decommissioning obligations associated with the Spurr Platform.
Relief Requested
13. By this Motion, the Debtors seek to abandon the Abandoned Assets
effective as of
the Petition Date because they are burdensome to the Debtors' estates and are of
no value or other benefit to the estates. For the same reason, the Debtors seek to reject the
5
68773-002\DOCS _SF: 65003.4
Rejected Contracts that are associated with the Abandoned Assets. Upon entry of an order
granting this Motion, the Debtors wil provide reasonable cooperation (as determined by the
Debtors in their sole discretion) to Marathon with respect to the Abandoned Assets, but the
Debtors wil not be obligated to fud any expenses associated with decommissioning the Spurr
Platform as an administrative expense of these estates.
554(a); see also FED. R. BANKR. P. 6007. "The trustee's power to abandon property is
discretionary." In re Slack, 290 B.R. 282, 284 (Ban. D.NJ. 2003) (citations omitted). "Courts
defer to the trustee's judgment and place the burden on the party opposing the abandonment to
prove a benefit to the estate and an abuse of
the abandonment must show some likely benefit to the estate, not mere speculation about
possible scenarios in which there might be a benefit to the estate." Id. The court only needs to
find the trustee made: 1) a business judgment; 2) in good faith; 3) upon some reasonable basis;
BANKRUPTCY LAW AND PRACTICE at 74:2 (3d ed. 2008). Hence, abandonment is retroactive to
the petition date and constitutes a divestiture of
6
68773-002\DOCS _ SF:65003.4
with a possessory interest in it. See In re Guterl Special Steel Corp., 316 B.R. 843, 861 (Ban.
W.D. Pa. 2004) (abandoned property reverts nunc pro tunc to the debtor or the pary with
possessory right to the property as of
338 F.2d 392,394 n.1 (9th Cir. 1964) ("The ordinary rule is that, when a trustee abandons
property of
the bankpt, title reverts to the bankupt, nunc pro tunc, so that he is treated as
having owned it continuously.") (citations omitted); see also Midlantic Natl Bank v. New Jersey
Dept. of Environmental Protection, 474 U.S. 494, 507 (1986) ("Although 544 does not specify
to whom the property is to be abandoned, the legislative history suggests that it is to the person
having a possessory interest in the property. . .. Such abandonment is to the person having the
ppssessory interest in the property."); Ohio v. Kovacs, 469 U.S. 274,284 n. 12 (1985)
("(A)bandonment is to the person having the possessory interest in the property.").
16. As noted above, once the trustee or debtor-in-possession makes a
the
abandonment is low. Here, the Debtors have determined in their sound business judgment and in
good faith to abandon the estates' interests in the Spurr Platform and the associated Abandoned
Assets. The Spurr Platform is a material liabilty of these banuptcy estates given that it is no
longer operating and wil require between $21.0 milion to $35.0 milion in decommissioning
expenditures (of
which the Debtors wil be responsible for $6.6 millon to $11.1 milion). Under
any foreseeable set of circumstances, there is no value that can be realized out of the Abandoned
Assets, and they wil be a burden on the administration of these cases. The Debtors therefore
request authority to abandon the Abandoned Assets.
7
68773-002\DOCS _ SF:65003.4
17. The Debtors further submit that Marathon, as operator, majority obligor
for decommissioning costs, and the pary in possession and control of the Spurr Platform, should
be designated as the recipient of the Abandoned Assets. The Debtors believe that Marathon wil
be held responsible by applicable state and regulatory authorities for the entirety of the
decommissioning costs associated with the Spurr Platform. If this Motion is approved, the Debtors wil endeavor to transition the Abandoned Assets to Marathon in an orderly fashion, but
the Debtors do not intend to fud any decommissioning obligations on an administrative basis.
18. The Debtors are aware of
abandon property with environmental restrictions based upon the U.S. Supreme Court's decision
in Midlantic Nat'l Bank v. New Jersey Dept. of Environmental Protection, 474 U.S. 494, 507
(1986). As stated by this Court in In re Insilco Technologies, Inc., Midlantic and its progeny
stand for the proposition that "property of the estate may not be abandoned if the abandonment
wil act to contravene laws designed to protect public health and safety and wil pose an
imminent threat to the public's welfare." 309 B.R. 111, 114 (Banr. D. DeL. 2004). Given
Marathon's rolc as operator and its ongoing efforts to decommission the Spur Platform
consistent with applicable non-bankptcy law, the Debtors submit that abandonment of
the
Abandoned Assets wil not contravene any laws designed to protect public health and safety and
wil not pose an imminent threat to the public's welfare. Accordingly, the Debtors urge the
Court to authorize such abandonm~nL
19. In addition, the Debtors seek authority to reject the Rejected Contracts.
Section 365(a) of
8
68773-002\DOCS _ S F:65003.4
the debtor." 11
an executory contract or
unexpired lease is appropriate where rejection would benefit the Debtors' estates. See Sharon
Steel Corp. v. National Fuel Gas Distribution Corp. (In re Sharon Steel Corp.), 872 F.2d 36, 40
(3d Cir. 1989). Whether the assumption or rejection of an executory contract or unexpired lease
would benefit the estate is a matter reserved for the Debtors' business judgment. See NLRB v.
Bildisco (In re Bildisco), 682 F.2d 72, 79 (3d Cir. 1982) ("The usual test for rejection of an
executory contract is simply whether rejection would benefit the estate, the 'business judgment'
test."). If
the debtors' business judgment has been reasonably exercised, a court should approve
Abandoned Assets, the Debtors seek to reject the Rejected Contracts that are associated with the
Abandoned Assets.
this Motion and their intent to abandon the Abandoned Assets on "all creditors."
The Debtors' consolidated matrix contains over 1,100 creditors. The Debtors submit that service
of this Motion on all of
of this Motion and supporting documents on the constituents set forth below and, therefore,
9
68773-002\DOCS _ SF:65003.4
request a limited waiver of the service requirement set forth in Rule 6007. The Debtors submit
that the requested waiver is appropriate and wil properly and timely effectuate notice.
22. The Debtors also request that the Court waive the 10-day stay associated
with rejection of
the Rejected Contracts under Banptcy Rule 6007(d) so that the Court's order
Notice
23. Notice of
this Motion has been given to the following parties or, in lieu
known: (a) the Office of
Committee of
Unsecured Creditors; (c) the Debtors' pre-petition and post-petition lenders; (d) all
parties who have an interest in the Abandoned Assets (including the Rejected Contracts); and (e)
all parties who have requested notice pursuant to Rule 2002 of the Federal Rules of
Bankruptcy
Procedure. The Debtors submit that, in light of the nature of the relief requested, no other or
further notice need be given.
No Prior Request
24. No previous motion for the relief sought herein has been made to this or
any other Court.
10
68773-002\DOCS _ SF:65003.4
WHEREFORE, the Debtors respectfully request that the Cour enter an order (a)
granting this Motion; (b) authorizing the abandonment of the Abandoned Assets nunc pro tunc to
the Petition Date pursuant to section 554 of
other and further relief as the Court deems just and proper.
ikharasch~pszjlaw.com
joneil~pszjlaw.com mlitvak~pszjlaw.com
Counsel for Debtors and Debtors in Possession
11
68773-002\DOCS _ SF:65003.4
In re:
) )
Chapter 11
) ) )
Deadline for Objections: May 27, 2009 at 4:00 p.m. prevailng Eastern time Hearing Date: June 3, 2009 at 1 :00 p.m. prevailng Eastern time
NOTICE OF MOTION OF DEBTORS FOR AN ORDER AUTHORIZING ABANDONMENT OF INTERESTS IN THE SPURR PLATFORM LOCATED IN ALASKA AND REJECTION OF EXECUTORY CONTRACTS RELATING THERETO
TO: (a) the Office of
Delaware; (b) counsel to the Unsecured Creditors (c) the Debtors' pre-petition and post-petition lenders or their counsel (d) all paries who have an interest in the Abandoned Assets (including the Rejected Contracts) and (e) all parties who have requested notice pursuant
the United States Trustee for the District of Official Committee of
PLEASE TAKE NOTICE that on May 11,2009, the debtors and debtors-inpossession (collectively, the "Debtors") in the above-captioned case have filed the attached
i The Debtors in these cases, along with the last four digits of each of
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska
(7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc.
Holdings, LLC (tax I.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (5463). The mailing address for all of the Debtors is III W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.
Objections or other responses to the Motion, if any, must also be served so that
they are received not later than May 27, 2009 at 4:00 p.m. prevailng Eastern time, by: (1)
Pachulski Stang Ziehl & Jones LLP, 919 North Market Street, 1 ih Floor, Wilmington, DE
19899-8705, Attn: Laura Davis Jones, Esq.; Fax: 302-652-4400, e-mail: ljones~pszjlaw.com
and (2) Pachulski Stang Ziehl & Jones LLP, 10100 Santa Monica Blvd., 11 th Floor, Los
399 Park Avenue, New York, NY 10022, Attn: Jeffrey Sabin, Esq.; Fax: 212-752-5378, e-mail:
01221-1726, Attn: Amy Kyle, Fax: 617-345-5001, e-mail: amy.kyle~bingham.com and Silver
Point Finance: Skadden, Ars, Slate, Meagher & Flom, LLP, 333 West Wacker Drive, Chicago,
Unsecured Creditors
CA 90067; Attn: Katherine C. Piper, Esq., Fax: (310) 734-3173, e-mail: kpiper~steptoe.com.
Facsimile: 310/652-4400
Email: liones~pszilaw.com
ikharasch~pszi law.com
smcfarland~pszilaw.com
rsaunders~pszi law.com
ioneil~pszilaw.com
kmakowski~pszi law.com
EXHIBIT A
42125-001 \DOCS_DE:6375. 1
EXHIBIT A
Attached to and made a part of that certain Motion Of
Authorizing Abandonment Of Interests In The Spurr Platform Located In Alaska And Rejection Of Executory Contracts Relating Thereto
That certain oil and gas platform built by the Superior Oil Company in the E/2 of Section 34i ON-13W under the authority granted under ADL 17597 in or about 1966. Prior to 1988, thc Spurr Platform (together with all associated facilities, materials and equipment acquired by the Debtors, the "Subject Property") was known as the Texaco "A" Platform, or less frequently, the Superior Trading Bay Platform.
platform, including the wells, pipelines, platform, all machinery, fixtures, facilities, gathering systems, driling and production platforms and rigs, subsea equipment, well, equipment, pipelines, flow lines, tank batteries, materials and equipment inventory, abandoned property, junk and other tangible personal property, fixtures and improvements, together with any movables and immovables located on the Subject Property, subject to all existing restrictions,
exceptions, reservations, conditions, limitations, burdens, contracts, agreements and other
matters applicable to the Subject Property, including but not limited to the following:
Driling Equipment:
2 Driling Rigs - containing the following:
558. Driven by General Motors diesel 7124-7201 V -12, with Allison Model TC-955 converter. 15" double dru rotor hydromatic
DOCS_SF:65018.2
2 Mud Tanks 7' wide X 25' lona X 6' deep, expanded metal top
1 Pipe Tong, air tongs
1 Mud Hopper
1 Mud Shaker Screen, Medearis Model E, 3 HP motor, 24" X 48", 2 deck
20" Riser System (in warehouse)
Crane, Unit Model 500, 50 ton capacity, 75' boom
1 30" Riser System (in warehouse)
Production Equipment:
1 Test Separator (V -1), 36" OD X 15' long, 18 Bbl, welded carbon
1 Common Separator (V -2), 60" OD X 15' long, 52 Bbl, 185 psi working pressure, 2 phase separation, horizontal, 6" gas meter oil
and water meters, manufactured by BS&B, SN '#30- TEX-3483429
1 Gas Scrubber (V-3), Vertical, 36" OD X 14'2", 17 Bbl, 125 psi working pressure, 2 Phase welded carbon steel, CB Southern, Inc. Gas DehydratorUnit, 3240 mcf/day, 2000 psi working pressure, complete with 14"X 5" inlet scrubber, stainless steel; 14" X 13'5" absorber glycol_ tower, 20" X 6' glycol accumulator and 20" X 8'5" 120,000 BTU/HR waste heat recovery unit run off turbine exhaust; Manufactured by CB Southern, Inc.
2 Glycol Pumps, duplex pump with 2 HP electrical motor. Union Pump Co.,
Model DX-5
1 Filter, 6" X 2'4", Peco #55-1-336
2
DOCS_SF:65018.2
Drain Tan, 12' X 6' X 12', 153 Bbl, atmospheric pressure, welded carbon steel plate1 Diesel Fuel Tan, 12' X 6' X 12',95 Bbl, atmospheric pressure, welded
steel
2 Flare Line Gas Scrubber, 2' X 5' horizontal, 150 psi, with 6" Varec flame
1 Flare Boom, 6", with low and high pressure flare stack
1 Salt Water Washdown Pump, Garmon Pump, 2" X 2" centrifugal,
=8L-400P, 14" X 48" barrel with filter and 75 HP motor; Rockwell700, screen
2 Fresh Water Reservoirs, 32" X 16' long, 500 Gal. capacity
each, 50 psi working pressure, horizontal welded carbon steel,
mounted on ceilng
1 Gas Lift Injection Compressor, Cooper-Bessemer, FM-3, SN --#47188, 3
stage 13'l", 700 psi; 7Y4", 1200 psi; 4'l", 3500 psi
maxi:;
rpm, with General Electric, 600 HP, 3 phase, 480 volt induction 6'
fly wheel complete with:
1 First Stage Suction Drum, 18" X 7' stainless steel, 230 psi. 70F
i. Second Stage Suction Drum, 14" X 6" stainless steel, 500 psi,
i 20F
Third Stage Suction Drum, i 2" X 5' stainless steel, 1000 psi,
i 20F
i First Stage Discharge, 14" X 6" stainless steel, 500 psi, 500F
1 Second Stage Discharge, 12" X 6' stainless steel, 1000 psi, 650F Third Stage, 12" X 5' stainless steel, 3500 psi, 350F
3
DOCS_SF:65018.2
1 First Interstage Scrubber, 16" X 5' stainless steel, 500 psi, 120F
5409629, 750 KW, 1100 amps, generator each, 1200 HP gas turbine
1 Onan Emergency Generator, 15 KW with Wisconsin engine, 1
metal structure house, 20' long X 10' deep X 3' high (not in service)
1 Miler Welder, 60/30 amp., 230/460 volt, Model 3RH333
Diesel Tank, 500 gallons, 48" X 7', welded carbon steel, flat heads, welded carbon steel
4 Cathodic Protection Units, RIO, model ACB, 230/460 V AC X 40 volt DL,
400 Amp
1 Salt Water Pump, Johnson, 6" vertical shaft with 75 HP motor, used for
fire pump, automated to deliver 375 GPM to sectionalized fog nozzle system
1 Fire Water pump, Gould Model 43655, 40 HP
4
DOCS_SF:65018.2
2 Meter Run, 3", Daniel Orifice with totalizer, (turbine fuel & sales gas) Double Acting Chemical Injection Pumps, Tex-steam, 1/2 HP motor with
1 reservoir, 24" X 42' X 30"
1 Chemical Injection Pump, Tex-steam, double act rig 1/2 HPmotor with
plate, vertical
1 Salt Water Supply Pump, 15 HP driving Johnson, 6" vertical, shaft pump
Production Surge Tank (2B), 6' X 6'6",33 Bbls, 125 psi working pressure, vertical vessel, stainless steel, KOBE
1 Glycol Heat Surge Tan, 318 Gals., 150 psi working pressure, vertical
atmospheric pressure
Instrument Air Dryer, Kemp-Oriad, Model #50EA-7, 250 psi, regeneration type
3 Pig Launchers, 6", 5000 psi working pressure
Alar and P A System
propelled, C/W
survival gear
2 Life Rafts, BE Goodrich, Model MK 3A, Type MM inflatable, 12
man
9 Survival suits, Imperial Penguin
5
DOCS_SF:65018.2
phone
equipment.
1 Leg Room 2B, 20' X 20', insulated metal
valves with two 2" 3M wing valves) and 2" 5M Wilis chokes
Pipelines:
2 6", Sch 120, X Tru coated, oil and gas pipeline to shore
6", Sch 120, X Tru coated, emergency pipeline to Spa r k P i at for m
Miscellaneous:
& Shop: Concrete foundation, structural steel frame, explosion proof lights
and fluorescent lighting, walls insulated with fiberglass. Heater Treater
6
DOCS_SF:65018.2
Production Building:
i Free Water Knockout & Flow Splitter, C.E. Matco, 10' OD X50 psi
lighting and control and 1 charge pump panel for above generator
1 Recycling Rotary Pump, 2 1/2" Vicking, with 3 HP electric
Transformer, 75 KV A
(b) All right, title and interest of Debtors in that certain North Trading Bay Unit
Operating Agreement; that certain North Trading Bay Unit Agreement; that certain Letter Agreement Between Union Oil Company of California and Marathon Oil Company, dated July 26, 1988, effective March 31, 1988; and that certain Assignent and Bil of Sale between Union Oil Company of Californa and Forcenergy, Inc., dated December 22, 1998.1
i The Debtors reserve all rights to argue that the foregoing agreements are not executory contracts or that the
Debtors do not have any obligations under such agreements.
7
DOCS_SF:65018.2
In re: ) Chapter 11
)
Debtors. )
) Jointly Administered
ORDER GRANTING MOTION OF THE DEBTORS FOR AN ORDER AUTHORIZING ABANDONMENT OF INTERESTS IN THE SPURR PLA TFORM LOCATED IN ALASKA AND REJECTION OF EXECUTORY CONTRACTS RELATING THERETO
This matter came before the Court on the motion (the "Motion,,)2 of the above-
captioned debtors and debtors in possession (the "Debtors") for entry of an order: (a) pursuant to
section 554 ofthe Banuptcy Code, authorizing the Debtors to abandon nunc pro tunc to the
Petition Date their interests in an offshore oil and gas platform commonly designated the "Spurr
Platform" located in Alaska; and (b) pursuant to section 365 of
the Debtors to reject any executory contracts relating to the Abandoned Assets (together, the
"Rejected Contracts"). The Debtors submit that the Abandoned Assets are burdensome and of
inconsequential value or benefit to the Debtors' estates. Having reviewed the Motion, the Court
finds that (a) the Court has
(b) this is a core proceeding pursuant to 28 U.S.C. 157(b)(2)(A) and (L), (c) venue of
i The Debtors in these cases, along with the last four digits of each of
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska
Holdings, LLC (tax I.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The
the Debtors is 111 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802. mailng address for all of 2 Capitalized terms not otherwise defined herein shall have the meanings set forth in the Motion.
68773-002\DOCS _ SF:65003.4
chapter 11 cases in this District is proper pursuant to 28 U.S.C. 1408 and 1409, and (d) notice of the Motion was sufficient under the circumstances, and the Court having determined that the legal and factual bases set forth in the Motion establish cause for the relief sought therein, and it appearing that the relief requested is in the best interest of the Debtors, the estates, creditors, and
other paries in interest; it is hereby:
ORDERED that the Debtors are authorized to reject the Rejected Contracts
pursuant to section 365 of
ORDERED that, upon abandonment, title to the Abandoned Assets shall pass to
Marathon Oil Company ("Marathon"), as operator and par owner of the Spurr Platform; and it is
fuher
ORDERED that the Debtors are authorized (in their sole discretion) to cooperate
with Marathon (in its role as operator) to transition the Debtors' interests in the Abandoned Assets, but the Debtors shall not fund any portion of the decommissioning liability associated
2
68773-002\DOCS _ SF:65003.4
ORDERED that this Cour shall retain jurisdiction to hear and determine all
matters arising from or relating to this Order.
3
68773-002\DOCS _ SF:65003.4
In re:
) ) ) ) )
Chapter 11
CERTIFICATE OF SERVICE
I, James E. O'Neil, Esquire, hereby certify that on the 11 th day of
May 2009, I
caused a copy of the following document to be served on the individuals on the attached service
list in the maner indicated:
NOTICE AND DEBTORS' MOTION FOR ORDER AUTHORIZING ABANDONMENT OF INTERESTS IN THE SPURR PLATFORM LOCA TED IN ALASKA AND REJECTION OF EXECUTORY CONTRACTS RELATING THERETO
i The Debtors in these cases, along with the last four digits of each of
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska
Holdings, LLC (tax J.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The
mailng address for all of
the Debtors is 111 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.
68773-00
I \DOCS_DE:
146094. 1
Alaska Oil & Gas Conservation Commission Attn: Jody J. Colombie Special Assistant to the Commission 333 W. 7th Ave., Ste. 100 Anchorage, AK 99501
State Of Alaska Petroleum Land Manager Division of Oil and Gas Attn: Temple Davidson 550 W. 7th Ave, Ste 800 Anchorage, AK 99501-3561
Union Oil Company of California Attn: Shanon Martin, CPL 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503
Conservation Air Permits Program Division of Air Quality Department of Environmental Conservation Attn: John Kuterbach, Division Head 410 Wiloughby Ave., Ste 303 P.O. Box 111800 Juneau, AK 99811-1800
Anchorage, AK 99503
410 Wiloughby Ave., Ste 303 P.O. Box 111800 Juneau, AK 99811-1800
Cook Inlet Regional Citizens Advisory Council (CIRCAC) 910 Highland Ave. Kenai, AK 99611
51377 Kenai Spur Hwy, Kenai, AK 99611 Attn: Douglas Lentsch P. O. Box 7314 Nikiski, AK 99635
Mobil Exploration And Producing North America ExxonMobil Exploration and Producing Operations 800 Bell Street Houston, TX 77002
Pacific Energy Resources Ltd. 2002 Service List Case No. 09-10785
Document No. 145745
12 - Hand Delivery
39 - First Class Mail 02 - FOREIGN First Class Mail
Hand Delivery (United States Attorney) Ellen W. Slights, Esq. United States Attorney's Office District of Delaware
1007 N. Orange Street, Suite 700
Wilmington, DE 19801
Hand Delivery (Counsel for Silver Point Finance) Ian S. Fredericks, Esquire Skadden Ars, Slate, Meagher & Flom LLP One Rodney Square P.O. Box 636 Wilmington, DE 19899
Counsel for Debtors) Laura Davis Jones, Esquire James E. O'Neil, Esquire Kathleen P. Makowski, Esquire Pachulski Stang Ziehl & Jones LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705
Interoffice Pouch to Los Angeles Counsel for Debtors) Robert M. Saunders, Esquire Ira D. Kharasch, Esquire Scotta E. McFarland, Esquire Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 11 th Floor
Hand Delivery (Counsel for J. Aron & Company) Don A. Beskrone, Esquire Amanda M. Winfree, Esquire Ashby & Geddes, P.A.
500 Delaware Avenue, 8th Floor
Wilmington, DE 19899
Hand Delivery (Counsel for Union Oil Company of California, a California Corporation) Norman M. Monhait, Esquire Rosenthal, Monhait & Goddess, P A Citzens Ban Center, Suite 1401 919 Market Street, P.O. Box 1070 Wilmington, DE 19899 Hand Delivery (Counsel for Westchester Fire Insurance Company and Noble Energy Inc.) Tobey M. Daluz, Esquire Joshua E. Zugerman, Esquire Ballard Spah Andrews & Ingersoll, LLP
919 N. Market Street, 1 zth Floor
Wilmington, DE 19801
Hand Delivery (Copy Service)
Parcels, Inc.
Wilmington, DE 19801
Hand Delivery (Counsel for Oxy Long Beach Inc.) David L. Finger, Esquire
Finder, Slanina Liebesman, LLC
Wilmington, DE 19899
Hand Delivery (Counsel for Marathon Oil Company) Kevin J. Mangan, Esquire Womble Carlyle Sandridge & Rice, PLLC 222 Delaware Avenue, Suite 1501 Wilmington, DE 19801
Hand Delivery (Counsel for Cook Inlet Region, Inc.) Eric Lopez Schnabel, Esquire Dorsey & Whitney (Delaware) LLP
i i 05 North Market Street, Suite 16th Floor
Wilmington, DE 19801
Hand Delivery (Counsel for Area Energy LLC) Norman L. Pernick, Esquire Karen M. McKinley, Esquire Cole, Schotz, Meisel, Forman & Leonard, P.A. 500 Delaware Avenue, Suite 1410 Wilmington, DE 19801
District Director Internal Revenue Service 31 Hopkins Plaza, Room 1150 Baltimore, MD 21201
(Counsel for Union Oil Company of California, a California Corporation) Cabot Christianson, Esquire Christianson & Spraker
911 West 8th Avenue, Suite 201
Anchorage, AK 99501
Banptcy Coordinator
MMS / Denver Federal Center POBox 25165 Mail Stop 370B2 Denver, CO 80225
Philadelphia, P A 19103
Baltimore, MD 21209
Greenwich, CT 06830
E. Kathleen Shahan, Esquire U.S. Department of Justice 1100 L Street, NW Washington, D.C. 20005
(Counsel for Aera Energy LLC) Steven E. Rich, Esquire Mayer Brown LLP
350 South Grand Avenue, 25th Floor
Joshua Taylor, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue NW Washington, DC 20036
Anchorage, AK 99501
the Americas
Martin A. Mooney, Esquire Deily, Mooney & Glastetter, LLP 8 Thurlow Terrace Albany, NY 12203